The European currency dropped earlier today to trade at a four-year low against the dollar, but better than expected data from the manufacturing sector along with rising construction spending, managed to spread optimism among investors and drive indices higher and the Euro to trim off some of the losses that were acquired against most of its counterparts.
Investors continued to target low yielding assets after a wave of optimism drove them to target higher ones, which caused fluctuations as well in the stock market in the U.S., gold continued to dominate trading as investors sought safe investments. The U.S. dollar index, which tracks the performance of the dollar against a basket of currencies, declined on the daily scale where it's currently trading at 86.49, compared with the opening levels of 86.73. Meanwhile, gold extended its rise for the seventh consecutive trading session, reaching $1224.90 an ounce, compared with the opening levels of $1215.70 an ounce.
As for trading, the euro-dollar pair trimmed its losses that were acquired earlier today where its currently trading at $1.2276, compared with the opening levels for today that were set at $1.2304, while it managed to reach the highest levels today at $1.2353 and the lowest at $1.2109. Expectations show that the pair will descend further, targeting $1.2100 levels, which rely on the pair's ability to breach the strong support at $1.2150, breaching both $1.2150 and $1.2100 pave the path for the pair to drop further to its main targets at $1.2050.
Moving to the Royal currency, the pair rose on the daily scale to trade at $1.4689, compared with the opening levels of $1.4531, where it managed to reach the highest levels today at $1.4721 and the lowest at $1.4436. The pair breached the resistance at $1.4530 that paved the path for the pair to target $1.4737 levels, but for these expectations to prevail, levels at $1.4530 must remain intact.
Finally talking about the dollar's performance against the Yen, the USDJPY pair traded slightly lower from the opening levels of 91.24 as its currently trading at 91.19, the pair managed to reach the highest levels today at 91.45 and the lowest at 90.52. As the pair managed to obtain a four-hour closing above 91.10, the pair is projected to rise further and retest the previously breached 91.45 levels, but the negative signs from the momentum indicator signals that the pair will suffer volatility at 91.45 before it descends further and target 90.00, that require trading to remain below 92.30.